INVITATION HOMES Debt To Equity vs. Return On Asset

4IV Stock  EUR 32.80  0.40  1.23%   
Based on INVITATION HOMES's profitability indicators, INVITATION HOMES DL may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess INVITATION HOMES's ability to earn profits and add value for shareholders.
For INVITATION HOMES profitability analysis, we use financial ratios and fundamental drivers that measure the ability of INVITATION HOMES to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well INVITATION HOMES DL utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between INVITATION HOMES's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of INVITATION HOMES DL over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in INVITATION Stock please use our How to Invest in INVITATION HOMES guide.
Please note, there is a significant difference between INVITATION HOMES's value and its price as these two are different measures arrived at by different means. Investors typically determine if INVITATION HOMES is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, INVITATION HOMES's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

INVITATION HOMES Return On Asset vs. Debt To Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining INVITATION HOMES's current stock value. Our valuation model uses many indicators to compare INVITATION HOMES value to that of its competitors to determine the firm's financial worth.
INVITATION HOMES DL is number one stock in debt to equity category among its peers. It also is number one stock in return on asset category among its peers . The ratio of Debt To Equity to Return On Asset for INVITATION HOMES DL is about  5,235 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the INVITATION HOMES's earnings, one of the primary drivers of an investment's value.

INVITATION Return On Asset vs. Debt To Equity

Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

INVITATION HOMES

D/E

 = 

Total Debt

Total Equity

 = 
111.50 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

INVITATION HOMES

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0213
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

INVITATION Return On Asset Comparison

INVITATION HOMES is currently under evaluation in return on asset category among its peers.

INVITATION HOMES Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in INVITATION HOMES, profitability is also one of the essential criteria for including it into their portfolios because, without profit, INVITATION HOMES will eventually generate negative long term returns. The profitability progress is the general direction of INVITATION HOMES's change in net profit over the period of time. It can combine multiple indicators of INVITATION HOMES, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Invitation Homes is a leading owner and operator of single-family rental homes, offering residents high-quality homes across America. The Companys mission statement, Together with you, we make a house a home, reflects its commitment to high-touch service that continuously enhances residents living experiences and provides homes where individuals and families can thrive. INVITATION HOMES operates under REIT - Residential classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1231 people.

INVITATION Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on INVITATION HOMES. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of INVITATION HOMES position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the INVITATION HOMES's important profitability drivers and their relationship over time.

Use INVITATION HOMES in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if INVITATION HOMES position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in INVITATION HOMES will appreciate offsetting losses from the drop in the long position's value.

INVITATION HOMES Pair Trading

INVITATION HOMES DL Pair Trading Analysis

The ability to find closely correlated positions to INVITATION HOMES could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace INVITATION HOMES when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back INVITATION HOMES - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling INVITATION HOMES DL to buy it.
The correlation of INVITATION HOMES is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as INVITATION HOMES moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if INVITATION HOMES moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for INVITATION HOMES can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your INVITATION HOMES position

In addition to having INVITATION HOMES in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Non-Metallic and Industrial Metal Mining Thematic Idea Now

Non-Metallic and Industrial Metal Mining
Non-Metallic and Industrial Metal Mining Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Non-Metallic and Industrial Metal Mining theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Non-Metallic and Industrial Metal Mining Theme or any other thematic opportunities.
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Other Information on Investing in INVITATION Stock

To fully project INVITATION HOMES's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of INVITATION HOMES at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include INVITATION HOMES's income statement, its balance sheet, and the statement of cash flows.
Potential INVITATION HOMES investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although INVITATION HOMES investors may work on each financial statement separately, they are all related. The changes in INVITATION HOMES's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on INVITATION HOMES's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.